Zattoo's UK site, which launched last December, streams live TV content from the BBC, Channel 4 and Five, as well as other English-, French- and German-language TV channels. However, broadcasters have been incensed by what they describe as the complete lack of commercial return they have been offered.
A senior insider at one of the UK's leading broadcasters said that sites such as Zattoo were attempting to become substitutes for broadcasters' core businesses and that channels were being 'ripped off' in the process.
'Most of us have no problem with the internet delivery of television, but we expect a return for it,' he said. 'There is also a huge issue with the idea of people watching our stations for free on Zattoo as there is no way for us to monitor the views, because BARB is unlikely to recognise a site like this as a platform for some time.'
Zattoo gets the programming, which it retransmits simultaneously and in full, via feeds directly from the broadcasters' satellites.
Comments
Zattoo isn't cutting ads out of the TV channels or streaming individual shows on-demand without ads. So there are two issues: audience measurement and territoriality.
1. Zattoo should be able to provide audience figures and should be entitled to advertise around its streams in return for the service it's providing. Look at the expense channels are going through to create online distribution when sites like this are already doing it.
2. The territorial breakdown of copyright is anachronistic in the age of the internet, particularly in the age of the European single market when people are highly mobile but unable to access their favourite media channels outside of national territory. It's absurd that copyright is allowed to trump the free movement of goods and services in this way.
The broadcasters should embrace sites like Zattoo as a way to get their 20th century models into the 21st century.
Indeed Alex - Lessons need to be learned from how the music industry failed to embrace the internet, preferring instead to have a "Burn the witchraft!" attitude instead :)
Interesting that the same channels 'incensed' by Zatoo's approach are rushing headlong into VoD propositions which don't seem to have any commercial proposition... but which potentially cannibalise their existing core (ad-funded) models. These same channels are also clearly oblivious to the many web aggregators which are redistributing TV channels without permission (or any benefit to the broadcaster).
At least Zatoo has thought through its business model, and it's one which makes some sort of sense, as well as being one done with the knowledge and co-operation of the broadcaster. They've also addressed the (somewhat arcane) rights issues on behalf of broadcasters. They do, indeed, undertake to provide viewing statistics, too.
Personally, I'd buy shares in Zatoo before I'd invest in some of these 'leading broadcasters' that don't seem to have a grasp of commercial realities in a convergent age.
In a convergent age, broadcasters need to think about [cost effective] distribution..and Zatoo does offer a valid approach... at a cost (to broadcasters) well below what some of them are spending on gimmicky non-TV distribution.
Can you see the irony of this - we're discussing Zatto, whilst Google serves adverts for illegal sites that stream linear channels with no rights what so ever.
Indeed... I wonder just how much ad revenue (not just Google's) is derived from business which operate in (and rely on) flagrant breaches of rights? How much of the alleged value of businesses like YouTube are also down to illegal material?
It's becoming like the wild west out there.... the naiive innocents who try to play straight get trampled on by the guys with the power and might, who just pay lip service to the law, or totally ignore it, claiming it's all about survival of the fittest...
This whole issue of internet TV is just a bit confussing. there seems to be new regualtions and breeches almost daily! I have not ever used Zatoo as I use another site calld viewmy.tv to watch free internet tv as its much better, but I reckon that it may be in a bit of trouble sooner or later. I agree with Fred, it always comes down to the big chesses winnig, well goos luck to them but iot may come to a sticky end!
Comments
Alex Lane - 22/04/2008
Zattoo isn't cutting ads out of the TV channels or streaming individual shows on-demand without ads. So there are two issues: audience measurement and territoriality. 1. Zattoo should be able to provide audience figures and should be entitled to advertise around its streams in return for the service it's providing. Look at the expense channels are going through to create online distribution when sites like this are already doing it. 2. The territorial breakdown of copyright is anachronistic in the age of the internet, particularly in the age of the European single market when people are highly mobile but unable to access their favourite media channels outside of national territory. It's absurd that copyright is allowed to trump the free movement of goods and services in this way. The broadcasters should embrace sites like Zattoo as a way to get their 20th century models into the 21st century.
Sean Murricane - 22/04/2008
Indeed Alex - Lessons need to be learned from how the music industry failed to embrace the internet, preferring instead to have a "Burn the witchraft!" attitude instead :)
Fred Perkins - 22/04/2008
Interesting that the same channels 'incensed' by Zatoo's approach are rushing headlong into VoD propositions which don't seem to have any commercial proposition... but which potentially cannibalise their existing core (ad-funded) models. These same channels are also clearly oblivious to the many web aggregators which are redistributing TV channels without permission (or any benefit to the broadcaster). At least Zatoo has thought through its business model, and it's one which makes some sort of sense, as well as being one done with the knowledge and co-operation of the broadcaster. They've also addressed the (somewhat arcane) rights issues on behalf of broadcasters. They do, indeed, undertake to provide viewing statistics, too. Personally, I'd buy shares in Zatoo before I'd invest in some of these 'leading broadcasters' that don't seem to have a grasp of commercial realities in a convergent age. In a convergent age, broadcasters need to think about [cost effective] distribution..and Zatoo does offer a valid approach... at a cost (to broadcasters) well below what some of them are spending on gimmicky non-TV distribution.
Richard Gale - 22/04/2008
Can you see the irony of this - we're discussing Zatto, whilst Google serves adverts for illegal sites that stream linear channels with no rights what so ever.
Fred Perkins - 23/04/2008
Indeed... I wonder just how much ad revenue (not just Google's) is derived from business which operate in (and rely on) flagrant breaches of rights? How much of the alleged value of businesses like YouTube are also down to illegal material? It's becoming like the wild west out there.... the naiive innocents who try to play straight get trampled on by the guys with the power and might, who just pay lip service to the law, or totally ignore it, claiming it's all about survival of the fittest...
Fredo gregg - 24/04/2008
This whole issue of internet TV is just a bit confussing. there seems to be new regualtions and breeches almost daily! I have not ever used Zatoo as I use another site calld viewmy.tv to watch free internet tv as its much better, but I reckon that it may be in a bit of trouble sooner or later. I agree with Fred, it always comes down to the big chesses winnig, well goos luck to them but iot may come to a sticky end!